Net Present Biodiversity Value and the Design of Biodiversity Offsets

There is an urgent need to develop sound theory and practice for biodiversity offsets to provide a better basis for offset multipliers, to improve accounting for time delays in offset repayments, and to develop a common framework for evaluating in-kind and out-of-kind offsets. Here, we apply concepts and measures from systematic conservation planning and financial accounting to provide a basis for determining equity across type (of biodiversity), space, and time. We introduce net present biodiversity value (NPBV) as a theoretical and practical measure for defining the offset required to achieve no-net-loss. For evaluating equity in type and space we use measures of biodiversity value from systematic conservation planning. Time discount rates are used to address risk of non-repayment, and loss of utility. We illustrate these concepts and measures with two examples of biodiversity impact–offset transactions. Considerable further work is required to understand the characteristics of these approaches.

[1]  N. Hamza,et al.  Conservation Planning and Low-carbon Values , 2014 .

[2]  Chris Hare,et al.  Policy Development , 2007, Information Security Management Handbook, 6th ed..

[3]  Adam B. Smith.  Caution with curves: Caveats for using the species–area relationship in conservation , 2010 .

[4]  Amy Pocewicz,et al.  A Framework for Implementing Biodiversity Offsets: Selecting Sites and Determining Scale , 2009 .

[5]  W. Nordhaus.  The "Stern Review" on the Economics of Climate Change , 2006 .

[6]  Kerry ten Kate,et al.  Biodiversity offsets : views, experience, and the business case , 2004 .

[7]  C. Taylor,et al.  Stern Review: The Economics of Climate Change , 2006 .

[8]  Amy Pocewicz,et al.  Frontiers inEcology and the Environment Development by design : blending landscape-level planning with the mitigation hierarchy , 2009 .

[9]  Atte Moilanen,et al.  Landscape Zonation, benefit functions and target-based planning: Unifying reserve selection strategies , 2007 .

[10]  Martin Drechsler,et al.  The time horizon and its role in multiple species conservation planning , 2008, 0807.4040.

[11]  D. P. Faith,et al.  Integrating conservation and development: incorporating vulnerability into biodiversity-assessment of areas , 1996, Biodiversity & Conservation.

[12]  H. Possingham,et al.  Spatial conservation prioritization: Quantitative methods and computational tools , 2009 .

[13]  William H. Desvousges,et al.  The use of habitat equivalency analysis in natural resource damage assessments , 2004 .

[14]  S. Sarkar,et al.  Systematic conservation planning , 2000, Nature.

[15]  David B. Lindenmayer,et al.  The biodiversity bank cannot be a lending bank , 2010 .

[16]  T. Stephens.  Measuring conservation achievement , 1999 .

[17]  Christian Gollier,et al.  Ecological discounting , 2010, J. Econ. Theory.

[18]  U. Hampicke.  Climate change economics and discounted utilitarianism , 2011 .

[19]  James E. Salzman,et al.  Currencies and the Commodification of Environmental Law , 2000 .

[20]  J. Fox,et al.  Status of Species Conservation Banking in the United States , 2005 .

[21]  Matthew E. Watts,et al.  Marxan and relatives: Software for spatial conservation prioritization , 2009 .

[22]  Ana S. L. Rodrigues,et al.  Shortcuts for Biodiversity Conservation Planning: The Effectiveness of Surrogates , 2007 .

[23]  Fabien Quétier,et al.  Assessing ecological equivalence in biodiversity offset schemes: Key issues and solutions , 2011 .

[24]  Daniel P. Faith,et al.  Integrating conservation and forestry production: exploring trade-offs between biodiversity and production in regional land-use assessment , 1996 .

[25]  D. P. Faith,et al.  Integrating conservation and development: effective trade-offs between biodiversity and cost in the selection of protected areas , 1996, Biodiversity & Conservation.

[26]  Frank Lupi,et al.  Landscape Equivalency Analysis: Methodology for Estimating Spatially Explicit Biodiversity Credits , 2005, Environmental management.

[27]  Jason T Quigley,et al.  Compliance with Canada’s Fisheries Act: A Field Audit of Habitat Compensation Projects , 2006, Environmental management.

[28]  Jason T Quigley,et al.  Effectiveness of Fish Habitat Compensation in Canada in Achieving No Net Loss , 2006, Environmental management.

[29]  J. Kiesecker,et al.  Policy Development for Biodiversity Offsets: A Review of Offset Frameworks , 2010, Environmental management.

[30]  William D. Nordhaus,et al.  A Review of the Stern Review on the Economics of Climate Change , 2007 .

[31]  William G. Lee,et al.  Why bartering biodiversity fails , 2009 .

[32]  Yakov Ben-Haim,et al.  How Much Compensation is Enough? A Framework for Incorporating Uncertainty and Time Discounting When Calculating Offset Ratios for Impacted Habitat , 2009 .

[33]  Ascelin Gordon,et al.  Assessing the impacts of biodiversity offset policies , 2011, Environ. Model. Softw..

[34]  H. Bierman,et al.  The Capital Budgeting Decision , 1960 .

[35]  Michael Drielsma,et al.  Synthesis of pattern and process in biodiversity conservation assessment: a flexible whole‐landscape modelling framework , 2010 .